Bankruptcy and Restoration of Solvency: How Can Citizens Resolve Their Debts?

Total debt must not exceed 1,600 MCI, which in 2026 amounts to no more than KZT 6,920,000.
The applicant must have no registered individually or jointly owned property. For debts outstanding for more than 5 years, this requirement does not apply.
No payments must have been made for 12 consecutive months. This period does not apply to persons who have received targeted social assistance during the last 6 months.
Debt settlement procedures with the creditor must have been completed. This requirement does not apply to agreements concluded before January 1, 2025.
Bankruptcy procedures must not have been applied during the previous 7 years.

Application and timeframes:

Applications may be submitted through eGov.kz, the eGov Mobile application, or branches of the Non-Profit Joint-Stock Company “Government for Citizens” (Public Service Centers).
The duration of the procedure is 6 months.
An accelerated period of 1 month applies where the debt is less than 1,600 MCI and has remained unpaid for 5 years.

Judicial Bankruptcy

Judicial bankruptcy applies when the conditions for the out-of-court procedure are not met and is initiated by submitting an application to the court.

Requirements:

Debt exceeds 1,600 MCI (more than KZT 6,920,000).
Debts to banks, MFOs, individuals, tax debts, and other debts may be written off.
No payments must have been made for 12 consecutive months.
When submitting an application to the court, a state fee must be paid (0.3 MCI / KZT 1,297.5), as well as the services of a financial manager (1 minimum wage per month / KZT 85,000; for socially vulnerable groups with no property, the cost is covered by the state budget).

Consequences of Bankruptcy

5 years — prohibition on obtaining new loans and microloans.
7 years — bankruptcy cannot be applied for again.
3 years — the citizen’s financial condition is subject to financial monitoring.

Restoration of Solvency

Restoration of solvency is an alternative to bankruptcy that does not result in obtaining the status of a “bankrupt.” It applies where a person has a stable income or property exceeding the amount of debt.

Conditions and procedure:

An application is submitted to the court at the place of residence.
A restoration plan is approved by the court for a period of up to 5 years.
Measures may include installment payments, reduction of interest rates, partial write-off of debt/penalties, and the sale or exchange of property.
Advantages: accrual of interest and fines is stopped, and seizures imposed on property are lifted.
Restrictions: taking out new loans and selling property outside the approved plan are prohibited.
Implementation: the individual implements the plan independently; in case of non-compliance, the debtor proceeds to judicial bankruptcy.